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Are Credit Unions Not Consumer Friendly Anymore

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Regular Contributor

Are Credit Unions Not Consumer Friendly Anymore

I don't know if this is the right section, but it seems to me that Credit Unions do not seem to be as consumer friendly anymore at least where I live. Many have tons of fees some more than banks. Also Many credit unions seem to be more conservative in lending than the banks and want your credit to be spotless where as banks seems to be more lenient these days. Credit Unions are going strictly by the score and are all policy. Has anyone else noticed this where you live and what do you think has caused this shift.
Chapter 7 Discharge April 2015. .Transunion 662 07/2017
Equifax 652 07/2017
Experian 657 07/2017
Cap One QS $2,200; Cap One QS$2,950; Cap One PSVisa $1,100; Nordstrom Visa $3,500; Target $300; Syncb/Walmart $500; VonMaur $500; Cap1/Saks $500; Barclays MC(AU) $6,400; Buckle $250; Syncb/Car Care (AU) $2,500.
Message 1 of 17
16 REPLIES 16
Frequent Contributor

Re: Are Credit Unions Not Consumer Friendly Amymore?

I don’t think you can paint either CUs or Banks with a broad brush. These are some awesome CUs (In my experience, NFCU, PSECU, even PenFed) and there are some awesome banks too (I don’t have one complaint about PNC or Schwab). There are some bad ones of each too.

In my experience, the space that CUs win in is interest rates. Whether it’s interest they pay you or interest they charge you on CCs, loans, etc.

One can’t go wrong with a balance of each accounts that cater to your needs (and to your benefit).
Personal Credit -
AMEX: Platinum, Green, Cash Magnet, Schwab Investor
PNC: Cash Rewards, Points
NFCU: Flaghship Rewards, Cash Rewards, More Rewards, CLOC
PSECU: Founders
BB&T: Spectrum Cash Rewards
CapOne: Quicksilver
Discover: IT Chrome
Synchrony: PayPal 2%, PayPal Credit
Barclays: Uber
PenFed: Power Cash Rewards
Store Cards: Target
AU Cards: Citi Rewards+

Business Credit-
AMEX: Blue Business Plus, Amazon Prime, Simply Cash Plus
Message 2 of 17
Regular Contributor

Re: Are Credit Unions Not Consumer Friendly Amymore?

That is true a good balance of both. I have a bank and credit union for banking. I also have credit cards/loans with major lenders and a loan with a credit union, it just seems that credit unions seem more of a hassle these days than they used to be.
Chapter 7 Discharge April 2015. .Transunion 662 07/2017
Equifax 652 07/2017
Experian 657 07/2017
Cap One QS $2,200; Cap One QS$2,950; Cap One PSVisa $1,100; Nordstrom Visa $3,500; Target $300; Syncb/Walmart $500; VonMaur $500; Cap1/Saks $500; Barclays MC(AU) $6,400; Buckle $250; Syncb/Car Care (AU) $2,500.
Message 3 of 17
Community Leader
Super Contributor

Re: Are Credit Unions Not Consumer Friendly Amymore?

That's how it is with my main credit union. They wouldn't even give me a secured card unless I got my scores in the 630-640 range, which is ridiculous because I wouldn't need a secured card at that point. When I get a chance, I'll be moving my money and direct deposits elsewhere.







Message 4 of 17
Community Leader
Super Contributor

Re: Are Credit Unions Not Consumer Friendly Amymore?

They also wouldn't qualify me for a car loan. Neither did NFCU, but chase did. 🙄







Message 5 of 17
Super Contributor

Re: Are Credit Unions Not Consumer Friendly Amymore?

Depends on the CU, I suppose.

 

We've got several local ones here, and one has gotten worse every year.  Trying too hard to be a big bank.  Another one has been simply marvelous for our entire relationship and treats my wife the way that we expect.

 

I've still got a car loan with that first CU, but after that, I think that we'll be done with them. 

 

As someone else has already mentioned, NFCU is simply awesome!

 

If your credit union isn't working for you, go find one that does.  Smiley Happy

12/01/19 Fico 8: EX 732, EQ 732, TU 755.
11/08/19 Fico 9: EX 733, EQ 740, TU no idea...
Zero percent financing is where the devil lives...

Firmly in the garden until the next pre-approval arrives!
Message 6 of 17
Super Contributor

Re: Are Credit Unions Not Consumer Friendly Anymore


@MB2714 wrote:
I don't know if this is the right section, but it seems to me that Credit Unions do not seem to be as consumer friendly anymore at least where I live. Many have tons of fees some more than banks. Also Many credit unions seem to be more conservative in lending than the banks and want your credit to be spotless where as banks seems to be more lenient these days. Credit Unions are going strictly by the score and are all policy. Has anyone else noticed this where you live and what do you think has caused this shift.

No, I don't think you can generalize about it.

 

Some are good, some are not so good. And things change.


Total revolving limits 732500 (606000 reporting) 12/4/20 FICO 8 scores: EQ 715 TU 760 EX 735
Message 7 of 17
Frequent Contributor

Re: Are Credit Unions Not Consumer Friendly Anymore

It.s a case by case scenerio. I get charged no fee's  from well's fargo (due to the fact I have a large amount of holdings at Wells fargo advisors, They even reinbursed me for 3rd party atm fees,) If I did more then have some CDs at at one CU Iuse, I would get charged a whole bunch of fees.

Message 8 of 17
Community Leader
Senior Contributor

Re: Are Credit Unions Not Consumer Friendly Anymore

I have the highest lines with my credit unions, they are much much more generous than any of the big banks out there.

I am quite pleased with credit unions .
EXP 760 TU 781 EQ 733
Message 9 of 17
Contributor

Re: Are Credit Unions Not Consumer Friendly Anymore


@MB2714 wrote:
I don't know if this is the right section, but it seems to me that Credit Unions do not seem to be as consumer friendly anymore at least where I live. Many have tons of fees some more than banks. Also Many credit unions seem to be more conservative in lending than the banks and want your credit to be spotless where as banks seems to be more lenient these days. Credit Unions are going strictly by the score and are all policy. Has anyone else noticed this where you live and what do you think has caused this shift.

With the explosion of online banks, I don't believe it's fair to compare today's credit unions versus most banks. You have banks like Charles Schwab, CMA's like Fidelity's, and online only banks like Capital One 360... None of these companies have bank branches like credit unions have, so no overhead costs involved, which can result in lower fees, perhaps unlimited ATM reimbursements, and higher interest paid. 

 

Your average credit union is sure to have lower loan rates, higher dividend rates, and a more personal approach to banking than the big 5 (Wells Fargo, Chase, BoA, Citi, and U.S Bank). A lot of credit unions also pay ATM fees back (whereas at banks like Chase and Citi, you have to have a significant amount of deposits/investments before that happens). 

 

Federal credit unions are more conservative on loans for a few reasons. First, the maximum interest rate on a loan is 17.99%,  whereas the large banks can get away with pretty much whatever they want (a lot of people have CC's in the mid 20% range). The credit union is making less on loans and would want to have a higher underwriting criteria to make up for the risk. Second, credit unions are ran by member deposits and payments on interest... Other members do not appreciate when one member defaults on a loan; thus, wasting the shared money a credit union runs off of. When you put $1,000 in a savings account at a credit union, the credit union takes that money and loans it out to another member in the form of a loan at a much higher interest rate.... It doesn't just sit there idle. Third, credit unions don't want to be in the same positions the banks were back in 2008 (become at risk of failing without a government bailout) so they need to be more careful with who the lend their money to and how much they're lending out.  

 

 

Message 10 of 17
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